Determine what is the net cash flow after tax

Assignment Help Econometrics

Reference no: EM13213085

The Lone Pine Gold Company (LPG Co.) purchased its corporate headquarters office building for $390,000 in Lone Pine, California on May 18, 2002. After some remodeling and refurbishing that cost $56,000, the company placed this building in service on September 28, 2002. The company used this building for business purposes (thus earning the allowable depreciation deductions) until April 2, 2014 when the building was sold for $480,000. However, the LPG Co. had to pay $45,000 in selling expenses in order to make this sale. What is the net cash flow after tax that will result from selling this office building in the year 2014? The capital gains tax rate for the LPG Co. is 15% in 2014. Net Cash Flow after tax from salvage value = _______.

Reference no: EM13213085

Questions Cloud

Explain mixture in a boiling water bath : During a recrystallization a student takes 1g of a white (colorless) solid and adds 5 mL of acetone. He heats the mixture in a boiling water bath and adds another

What is the net present value of the business : In March of year 0, Molly begins building a barn that she will use for a horse stable business. This barn costs $43,000 plus $7,000 for earthwork to make it usable, and is placed into service in May of year 0. She also buys a tractor for this busines..

What impact does this discount have on the decision : Estimate the base case cost of each alternative regarding the provision of ultrasound services and what value for travel and setup costs would make the costs of the two alternatives the same?

Explain is temperature an important factor : Is temperature an important factor to consider when determining the Ksp (solubility product constant) when doing this titration

Determine what is the net cash flow after tax : The Lone Pine Gold Company (LPG Co.) purchased its corporate headquarters office building for $390,000 in Lone Pine, California on May 18, 2002. After some remodeling and refurbishing that cost $56,000, the company placed this building in service ..

Explain what law states that mass and energy : What law states that mass and energy can be changed from one form to another but their sum remains constant?

What are the break-even levels of ebit : What are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Is one higher than the other? Why?

Find out the initial temperature of the balloon : How hot will a 2.3 L balloon have to get to expand to a volume of 400 L? Assume that the initial temperature of the balloon is 25 degrees Celcius.

Determine point price elasticity of demand for tweetie : General creal is using a regression model to estimate the demand for Tweetie Sweeties, a whistle-shape, sugar-coated breakfast cereal for children The following(multiplicative exponential) demand function is being used. Qp=6,280P-2.15A 1.05N3.70.

User Account

All Pages